Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
Electric Last Mile Solutions Board Wins Dismissal of Delaware Federal Securities Action
- Client News
- February 7, 2025
Practices
Paul, Weiss achieved a significant victory in Delaware federal court when U.S. Magistrate Judge Laura Hatcher of the District of Delaware recommended the dismissal of securities claims against all defendant board members of electric vehicle company Electric Last Mile Solutions (ELMS), including former Chairman Jason Luo, in relation to the company’s public disclosures.
ELMS was formed through the merger of Electric Last Mile (ELM) and the Forum Merger III Corporation (FIII), a special purpose acquisition company. The plaintiffs—investors in FIII’s private investment in public equity offering ahead of its acquisition of ELM—alleged that prior to the merger, FIII made materially false and misleading disclosures surrounding certain equity transactions by and between ELMS directors and officers, as well as surrounding ELM’s audited financial statements.
In her report recommending the dismissal of the claims against the defendants under Section 10(b) of the Securities Exchange Act of 1934, Judge Hatcher reasoned that the plaintiffs failed to adequately allege that Luo was the “maker” of any false statements or that he had ultimate authority over any such statements. Judge Hatcher also recommended the dismissal of the plaintiffs’ Rule 10b-5 scheme liability claim, finding that the plaintiffs failed to plead the required elements and further abandoned the claim by not responding to the defendants’ arguments.
The Paul, Weiss team includes litigation partners Andrew Ehrlich, Roberto Finzi, Gregory Laufer (who argued the motion) and Matthew Stachel.